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Prestige group agrees to promote sure workplace, retail belongings & 2 lodges to Blackstone for Rs 12Okay crore

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NEW DELHI: Realty agency Prestige Estates Projects Ltd on Saturday mentioned it has agreed to promote sure workplace, retail and lodge properties to world funding agency Blackstone — in a giant ticket actual property deal estimated at round Rs 12,000 crore.

Prestige group didn’t disclose the deal dimension, however sources mentioned that the Bengaluru-based agency has signed time period sheets with Blackstone to promote industrial properties for an enterprise worth of round Rs 12,000 crore.

The deal is anticipated to be closed by finish of the subsequent month in spite of everything the mandatory approvals together with that of the Competition Commission of India (CCI), sources mentioned.

In a regulatory submitting, Prestige on Saturday knowledgeable that it has “signed a non-binding letter of intent” with Blackstone for the sale of its curiosity in “certain commercial offices, retail and hotel properties, mall management and identified maintenance businesses.”

Prestige group has offered to Blackstone, exclusivity in relation to the transactions, it added.

The closure of the deal can be topic to completion of due diligence, finalization of the transaction construction, negotiation and execution of the definitive paperwork, satisfaction of the circumstances precedent in such definitive paperwork and receipt of approvals, if any required.

According to sources, the entire workplace, retail and lodge belongings to be monetised by this deal might be 15-20 million sq ft each accomplished and beneath development. Two lodges with 336 keys are additionally a part of the deal.

Blackstone and Prestige group spokesperson declined to remark.

Prestige group will utilise the fund raised by this monetisation to partially retire its debt and future growth.

US-based Blackstone has invested round USD eight billion in Indian actual property. It has sponsored two REIT (Real Estate Investment Trust) launched and listed up to now in India — Embassy Office Parks REIT and Mindspace Business Park REIT).

India’s workplace market has been performing effectively since previous few years regardless of the general slowdown in the true property sector.

The web workplace area leasing stood at report 45-50 million sq ft in 2019 calendar 12 months that additionally noticed the nation’s first REIT being launched and listed on inventory trade by Embassy Office Parks.

In August this 12 months, Mindspace Business Parks launched and listed the nation’s second REIT, whereas lately Brookfield has filed doc with SEBI for the third REIT.

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